Coca-Cola Is Crushing the Nasdaq and S&P 500 in 2026, but This Higher-Yield Dividend King Could Be an Even Better Stock to Buy for the Second Half of 2026

Yahoo Finance ·

It's been a great year for Coca-Cola ( KO +3.22% ) shareholders so far. The stock's up more than 16% since the end of 2025, easily outperforming the S&P 500 and the Nasdaq Composite . It's not too tough to figure out why, either. With the market wobbling amid concerns about artificial intelligence, investors are looking for certainty. With 64 consecutive years of dividend increases to its credit, the beverage behemoth clearly offers it. If you're looking for a better dividend-paying option for the latter half of 2026, consider fellow Dividend King and direct beverage rival PepsiCo ( PEP +2.20% ) . Here's why. At first blush, the two consumer product outfits are seemingly so similar that they're almost interchangeable. But look under the hood. The differences are surprisingly stark.

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